It is possible that the $12.15 low two weeks ago was the bottom before a major run higher. It is also possible that silver will continue to dance the sidestep for another few weeks into August or even September before breaking out to begin its run with the bulls. The markets know that I am a slow learner, and they thoughtfully remind me repeatedly that I am not good at picking short term tops or bottoms. My message today is not about which week will have the bottom tic of the sidestep correction, but it is about the huge payoff that is possible for those who accumulate their position in this timeframe.
Fools rush in, but this Optimist buys a little at a time
My optimistic advice to all who are persuaded by the chart above is to not try to buy their maximum position in one single purchase, but to phase in their position over a reasonable amount of time. For example, I have been buying into this sidestep pattern for much of the last month. My goal has been to get a good average of buys at prices that are lower, but may be a little higher too, so that overall I have a reasonable average for my purchases. I purchase only with fully paid resources, and I do not recommend any margin or leverage for purchasing silver. I update my charts daily and weekly, so readers can see my perspective on precious metals whenever they like.
No guarantees. None. Really, none at all!
As indicated in the disclaimer at the bottom, this commentary is not investment advice. I have had more than my share of viewpoints which the markets proved to be incorrect, and I do not encourage any reader to blindly follow my investment footsteps. I will be happy, however, if I have contributed a useful perspective to readers who are interested. Cheers!